New Mexico — Forcing a Sale When Some Family Members Refuse to Sell | New Mexico Partition Actions | FastCounsel
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New Mexico — Forcing a Sale When Some Family Members Refuse to Sell

What New Mexico law says about dividing or selling family-owned real estate when co-owners disagree

Detailed Answer

This section explains the court remedy that allows one or more co-owners to force a sale of real property when other co-owners refuse, how courts decide between physical division and sale, who may file, and practical steps to take in New Mexico.

Basic rule under New Mexico law

If multiple people own the same real property (for example, as tenants in common), any co-owner may bring a civil action asking the court to partition the property. New Mexico provides a judicial process called a partition action that can split the property into separate physical parcels (a partition in kind) or, if physical division is impractical or would unfairly harm owners, order a sale and divide the proceeds among the owners. For an overview of partition remedies in New Mexico law, see the New Mexico statutes on partition and related civil procedures: https://www.nmlegis.gov/Legislation/Statutes and New Mexico Courts information at https://nmcourts.gov.

Who can ask the court to act

Any co-owner with a legal interest in the property may file a partition action in district court. That includes co-owners who inherited property, purchased it together, or hold title through another mechanism. The court will join all persons who have an interest that could be affected by partition.

How the court decides between dividing the land and ordering a sale

Courts prefer to divide property in kind when it is practical and fair. The court will order a sale when division would be impractical, would damage the property’s value, or would be unfair to one or more owners. Common reasons for ordering a sale include:

  • The property cannot be physically divided without significant loss in value (for example, a single-family home on one lot).
  • Unequal ownership shares make an in-kind division impractical.
  • Use or character of the property (one house, one driveway, shared utilities) prevents clean division.

What happens after filing

Typical steps in a partition action:

  1. File a Complaint for Partition in the appropriate New Mexico District Court and name all people with possible interests.
  2. The court may appoint a commissioner or referee to examine the property, prepare a report, and recommend partition in kind or partition by sale.
  3. If the court orders sale, it will usually direct a public auction or other permitted sale method, pay liens and expenses, then distribute net proceeds according to ownership interests.
  4. The court may award costs and attorney fees in certain circumstances and decide how liens, mortgages, taxes, and commissions are handled before distribution.

Costs, timing, and practical consequences

Partition actions can take months to more than a year, depending on complexity. The proceeding creates litigation costs, court fees, appraisal and commissioner fees, and possible sale commissions. If you are seeking a sale, be aware that net proceeds will be reduced by these costs and by satisfaction of any mortgages or liens that attach to the property.

Alternatives to forcing a court sale

Before filing suit, consider these options:

  • Buyout offer: one or more co-owners buy the objecting owner’s share at a fair market value.
  • Mediation or negotiation to reach terms that address financial concerns or timing.
  • Agree to rent the property and share income until all owners agree to sell or circumstances change.
  • Refinance or pay off liens to make a private sale possible.

Special circumstances

If the property is subject to a written agreement (for example, a family buy-sell agreement, trust document, or deed restriction) that restricts sale or requires other procedures, that agreement will affect your options. If a co-owner holds a life estate or there are probate issues, those details change how and when a sale can occur. Liens, mortgages, or tax claims also must be resolved as part of the partition process.

Example (hypothetical)

Three siblings own a single-family home as tenants in common. Two siblings want to sell to divide proceeds; the third refuses. One of the two may file a partition action. If the court finds the house cannot be split without destroying value, it will likely order a sale and divide net proceeds according to ownership shares after paying secured debts and costs. The refusing sibling cannot block a properly conducted partition sale, though they can raise defenses or ask the court to consider alternatives.

Where to find the relevant statutes and rules

New Mexico’s statutory and court rules govern civil partition actions, notices, and how a court conducts sales and distributions. You can search the New Mexico Statutes on the Legislature’s website: https://www.nmlegis.gov/Legislation/Statutes. For courthouse procedures and self-help resources, see the New Mexico Courts site: https://nmcourts.gov.

Important disclaimer: This information is educational and does not constitute legal advice. I am not a lawyer. For advice about a specific situation and help with filing or responding to a partition action under New Mexico law, consult a licensed New Mexico attorney.

Helpful Hints

  • Gather documents: deed, title report, mortgage statements, tax bills, and any agreements affecting the property.
  • Confirm ownership type: tenant in common vs. joint tenancy vs. trust interest—each affects available remedies.
  • Get a current appraisal to understand market value and inform buyout offers or settlement talks.
  • Try mediation before filing—courts often favor parties who attempt settlement and mediation can save time and money.
  • Consider a cash buyout or phased buyout if one or more owners want to keep the property.
  • Understand tax consequences of a sale: capital gains allocation, basis, and possible withholding obligations—consult a tax adviser.
  • Be prepared for litigation costs and a timeline that can span many months.
  • If the property has liens or mortgages, determine who must pay them and how the court will handle payoff at sale.
  • Contact a New Mexico real estate attorney for tailored advice and help with court pleadings and strategy.

The information on this site is for general informational purposes only, may be outdated, and is not legal advice; do not rely on it without consulting your own attorney.